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CarrollsCSRPyramidResearchMethodology

CarrollsCSRPyramidanditsapplicationsto
smallandmediumsizedbusinesses
PostedonOctober25,2012byJohnDudovskiy
CarrollsCSRPyramid.AccordingtoCarroll(1983:608),corporatesocialresponsibilityinvolvestheconductofabusiness
sothatitiseconomicallyprofitable,lawabiding,ethicalandsociallysupportive.Tobesociallyresponsiblethenmeansthat
profitabilityandobediencetothelawareforemostconditionswhendiscussingthefirmsethicsandtheextenttowhichit
supportsthesocietyinwhichitexistswithcontributionsofmoney,timeandtalent.Andthedifferentlayersinthe
pyramidhelpmanagersseethedifferenttypesofobligationsthatsocietyexpectsofbusinesses.

Adoptedfrom:www.csrquest.net/imagefiles/CSR%20Pyramid.jpg

EconomicresponsibilityinCarrollsCSRPyramid:Itconcernstheresponsibilityofbusinessofproducinggoodsand
servicesneededbysocietyandsellingthemmakingaprofit.Novak(1996)hascontributedtothisarebydefiningseven
responsibilitiesofcompanies.Companieshaveshareholderswhodemandareasonablereturnontheirinvestments,they

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CarrollsCSRPyramidResearchMethodology

responsibilitiesofcompanies.Companieshaveshareholderswhodemandareasonablereturnontheirinvestments,they
haveemployeeswhowantsafeandfairlypaidjobs,andtheyhavecustomerswhodemandgoodqualityproductsatafair
price.So,herecomesthefirstresponsibilityofthebusinessasitistobeaproperlyfunctioningeconomicunitandstayin
business.Andthisisthebaseofthepyramid,wherealltheotherlayersreston.
LegalresponsibilityinCarrollsCSRPyramid:thelegalresponsibilityofcorporationsdemandsthatbusinessesabideby
thelawandplaybytherulesofthegame.Shouldcompanieschoosetobendorevenignoretheirlegalresponsibilitiesthe
pricecanbeveryhighforthebusiness.AndUSsoftwaregiantMicrosofthasfacedalongrunningantitrustcaseinEurope
forabusingitsmonopolisticpositiontodisadvantageitscompetitorswhichresultedintoughsettlementsagainstthe
company.
EthicalResponsibilityinCarrollsCSRPyramid:themainconceptofethicalresponsibilityasdefinedandexpressedby
Carroll(1991)isthattheethicalresponsibilityconsistsofwhatisgenerallyexpectedbysocietyoverandaboveeconomic
andlegalexpectations.Ethicalresponsibilitiesofcompaniescoveritswiderangeofresponsibilities.Ethicalresponsibilities
arenotnecessarilyimposedbylaw,buttheyareexpectedfromethicalcompaniesbythepublicandgovernmentsAndthis
casewasseenintheexampleofShell,wherethedecisionofthegovernmentwasreversedfordisposingofoilplatformaftera
campaignanddisagreementbythesocietyandpublic.
PhilanthropicresponsibilityinCarrollsCSRPyramid:asitisinthetopofthepyramid,itfocusesonmoreluxurious
thingssuchasimprovingthequalityoflifeofemployees,localcommunitiesandultimatelysocietyingeneral.Somepoints
ofthephilanthropicresponsibilitiesofthebusinessescanbecontroversialandrequiresseparatestudiesaimedtoit.For
example,whoshoulddecideonwhatcausetospendthemoney,howmuch,andonwhatbasisthesedecisionsshouldbe
made.
AmongcomparativelyrecenttheoriesconcerningfirmssocialresponsibilityisTheoryofthefirm/strategicleadership
theorywhichwasproposedbyWaldmanetal(2004).ThetheorystatesthatsomeaspectsofCEOleadershipcanhavea
directeffectontheinclinationoffirmstoengageinCSRandcompanieswhicharerunbyintellectuallystimulatingCEOs
doengagemoreinstrategicCSRthanaveragecompanies.
References
Waldman,D,Siegel,D&Javidan,M,2004,CEOTransformationalLeadershipandCorporateSocialResponsibility,
WorkingPaper,RensselaerPolytechnicInstitute
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CarrollsCSRPyramidResearchMethodology

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